'Now is the time to buy:' Trade war with China impacting local businesses and consumers

MILWAUKEE -- The trade war with China is already driving up prices. Predictions vary on how long it may last. However, savvy shoppers could save money by making purchases now.

The issue is directly impacting Fyxation Bicycle Company in Milwaukee. Its co-founder, Nick Ginster, showed Contact 6 a bicycle made entirely with parts and products from China.

"From the pedals, to the cranks, to the brakes, to the bolts," Ginster explained. "There are currently no parts on this bike that are made elsewhere."

The company will pay an extra 25% in new tariff taxes.

Nick Ginster, co-founder of Fyxation Bicycle Company

"No one has that type of margin in this industry to just absorb a 25% increase in their cost, so those are trickling down," Ginster said.

Ginster said buying a bike will cost more by the end of the summer.

"Some people have already implemented a 15% to 20% increase. We're in the process of implementing a price increase -- unfortunately," Ginster said.

Due to the ongoing trade war with China, retailers have signaled that Americans could see prices rise not only on sports equipment, but on paper products, smartphones, electronics, cars, clothing, hardware, school supplies and more.

Avik Chakrabarti, Associate Professor of Economics at University of Wisconsin-Milwaukee

University of Wisconsin-Milwaukee Associate Professor of Economics Avik Chakrabarti thinks the U.S. is on its way to winning the trade war, but had advice for anyone holding off on making a purchase.

"I would say now is the time to buy. You will feel smart when the prices go up," Chakrabarti advised.

If you need a new cellphone or computer, buy it now. If you've been putting off a home repair, get it started.

Chakrabarti is predicting any price increases will be short-lived, maybe a matter of months. Ginster thinks they'll be around longer than that. Right now, he is getting quotes from other countries, but hopes it doesn't come that.

"To develop a supply chain for a product like a bicycle, our current supplier we developed over three years," Ginster said. "I hope this tariff goes away and goes away quickly."